AVGO Options Highlight $350 Call Battle as AI Backlog Fuels Bullish Setup – Trade Ideas Inside

• Broadcom (AVGO) trades at $344.11, up 1.24% with volume surging to 13.4M shares.
• Options open interest shows a 1.09 put/call bias, with heavy put OI at $310 and call OI at $350.
• Analysts from RBC, Envision, and Wells Fargo all upgraded AVGO today, citing AI-driven growth and $430–$468 price targets.

Here’s the core insight: options data hints at near-term bearish caution, but bullish catalysts from AI backlogs and analyst upgrades could force a breakout above $350. The tension between these forces creates a high-probability trade setup.

The $350 Call Wall and Institutional Put Bets

Let’s start with the options chain. This Friday’s $350 call (AVGO20260116C350) has 18,518 open contracts—the highest of any strike. That’s a psychological wall: if AVGO closes above $350 by Friday, call buyers profit. But here’s the twist: the next Friday’s $350 call (AVGO20260123C350) has only 2,769 open contracts. Why? Traders are betting on a short-term pop, not a sustained move.

Meanwhile, puts are clustered at $310 (17,890 OI) and $320 (6,218 OI for next Friday). A block trade of 635 puts at $340 (AVGO20260320P340) suggests big players are hedging against a March pullback. This isn’t just noise—it’s a signal that while bulls are testing $350, bears are bracing for a potential $310–$320 support zone.

News Flow: AI Backlog Validates Bull Case

The upgrades today aren’t random. Envision Research’s “Buy” call hinges on a $73B AI backlog and a new XPU customer—a direct tailwind for AVGO’s chip sales. Wells Fargo’s $430 price target now assumes 2026 AI revenue will hit $52.6B, up 116% YoY.

But here’s the catch: options traders aren’t fully buying in. The put/call skew suggests they expect volatility. If AVGO’s price action confirms the bullish news (e.g., breaks above the 30D MA at $357.95), the $350 call wall could act as a self-fulfilling prophecy. However, a failure to hold above $343.92 (Bollinger middle band) might trigger a test of the $328.74 lower band.

Actionable Trade Ideas: Calls, Puts, and Precision Entries

For options traders, consider these setups:

• Bullish Call Spread: Buy AVGO20260123C350 (next Friday’s $350 call) and sell AVGO20260123C400. The $350 strike is in play if AVGO’s AI hype translates to a short-term pop. The $400 strike caps risk if the move fizzles.
• Put Hedge: Buy AVGO20260123P320 (next Friday’s $320 put) if AVGO dips below $348.63 (30D support). This protects against a $310–$320 collapse while keeping March block trade puts in view.

For stock traders, here’s the plan:

• Entry: Buy AVGO near $348.63 if it holds above the 30D support range (348.63–350.37). This aligns with the $350 call wall and 30D MA at $357.95.
• Target: Aim for $357.95 (30D MA) as the first profit zone. A break above $359.10 (Bollinger upper band) would validate the bullish case.
• Stop: Exit if AVGO falls below $343.87 (intraday low) or $343.92 (Bollinger middle band).

Volatility on the Horizon

The next 72 hours will be critical. If AVGO’s price holds above $348.63 and the $350 call wall gets breached, the 30D MA at $357.95 becomes a new floor. But if the stock stumbles below $343.92, the $328.74 lower band and $320 put wall could accelerate the slide.

This isn’t just about numbers—it’s about psychology. The block trade puts and analyst upgrades show AVGO’s AI story is gaining traction, but options traders are hedging against a near-term correction. Your job? Position for the breakout while managing risk at key levels.